LegalAware
LegalAware.ai
EMPOWERING LEGAL AWARENESS

Ramakant Dwivedi v. Rafiq Ahmad & Ors.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 4 of 2016)Decided 4 Jan 2016
Civil Appeal No. 4 of 2016
Justice Anil R. Dave · Justice Adarsh Kumar Goel

Background

The appellant held a minor-mineral mining lease that had expired in November 2010 and was later renewed by the State of U.P. in April 2013 for a further three years, with the State's support, on the footing that an earlier Government Order restricting such renewals after 31 May 2012 did not apply to his case. A public interest litigant challenged this renewal before the Allahabad High Court, which passed an interim order halting the appellant's excavation, holding the renewal inconsistent with its own earlier rulings (Nar Narain Mishra and Sukhan Singh) that no pending lease application could be granted or renewed after 31 May 2012 except through e-tender/e-auction under a different chapter of the Rules.

Decision Breakdown

The Supreme Court held that the April 2013 renewal was issued under a State Government Order of February 2013 that had already been found, in the High Court's own binding precedents, to improperly try to carve out an exception to the 31 May 2012 cut-off, so the renewal in the appellant's favour was invalid regardless of the State's support for it. The Court relied on established mining-law principles (from Hind Stone and Monnet Ispat) that no one has a fundamental or vested right to a mining lease or its renewal, that such grants are governed strictly by the rules in force at the time of disposal, and that public interest in conservation of mineral resources overrides private economic interest in continued exploitation. It also declined to go into a separate, later cancellation order dated 22 October 2014, holding that question could be raised separately if needed. The appeals were accordingly dismissed, the Supreme Court's own earlier interim stay was vacated, and the State was directed to assess and recover from the appellant any pecuniary benefit gained from excavation carried out during that interim stay period.

Lesson Learnt

No one has a vested or fundamental right to the renewal of a government mining lease: such renewals must strictly follow the mineral rules and policy directives in force at the time of the decision, and benefiting financially from mining under a court's interim stay carries the risk of having to disgorge that benefit if the stay is later vacated.

Official source (sci.gov.in)View Judgment (PDF)

More rulings in Mining Law

Mining LawSupreme Court of India

State of Haryana & Ors. v. M/S Faridabad Gurgaon Minerals & Anr.

The Supreme Court held that the statutory framework (Section 15(3) of the Mines and Minerals (Development and Regulation) Act, 1957 read with Rules 10 and 21 of the 1964 Rules) entitles the State to revise royalty and dead rent rates from time to time (subject to a cap of once every three years), and this statutory power is incorporated into the lease even where the deed itself is silent, because the auction notice and letter of acceptance expressly referenced the 1964 Rules. The Court also rejected the lessees' argument that the enhancement was procedurally invalid for want of Cabinet/Finance Department concurrence, holding there was "deemed consent" of the Finance Minister given the Chief Minister's approval and the collective responsibility of the Council of Ministers. The appeals were allowed and the High Court's judgment set aside, though the Court granted limited relief by capping interest on arrears at 12% per annum given the notification had remained stayed for years and the leases had since expired.

Decided 13 Jul 2026Read case
Mining LawSupreme Court of India

The State of Haryana v. M/s Jai Durgaa Finvest P. Ltd.

The Supreme Court held that the "no interest" clause was valid and enforceable while the contract was still running, so the High Court was wrong to award interest from the date of deposit. However, it read the same clause's three-month refund deadline literally: once the contract ended, if the State did not return the deposit within three months, interest liability would begin running from the expiry of that three-month window, not the deposit date. Applying this, the Court fixed interest at 9% per annum starting three months after termination until the amount was actually adjusted or refunded, partly allowing the State's appeal.

Decided 13 Jul 2026Read case
Mining LawSupreme Court of India

Kirloskar Ferrous Industries Ltd. v. Union of India

The Court rejected the challenge and upheld the rules as constitutional. It applied the presumption of constitutionality attaching to subordinate legislation, held that the different treatment of coal (where no ASP concept applies) and iron ore/other minerals is not comparable and so does not violate Article 14, and found the measure of levy to be a legitimate, rational anti-evasion mechanism rather than a change in the fundamental nature of the levy (a royalty on minerals removed, not a tax on sale value per se). It held the recommendations of expert committees favouring reform were merely advisory and did not establish that the existing rules were illegal, and that the three-year cap on revising royalty rates under Section 9(3) MMDR Act was not breached since the sale-value formula, not the royalty rate itself, was what was in question. The writ petition was dismissed with no order as to costs.

Decided 13 Jul 2026Read case
Mining LawSupreme Court of India

M/S Shanti Construction Private Limited vs. The State of Odisha

The Supreme Court agreed that the disqualification of the non-compliant bidder for failing to submit the required Income Tax Return was correct. However, it held that the High Court had no legal basis to direct the successful bidder to "match" a disqualified rival's rate after the tender process had already concluded: that amounted to unilaterally rewriting the terms of a public tender after the fact. The Court quashed the High Court's judgment and instead directed that a fresh auction notice be issued for the same quarry, with all interested parties, including the earlier bidders, free to re-bid on equal terms, and the earlier successful bidder's deposit refunded with 6% annual interest.

Decided 7 Nov 2025Read case
Mining LawSupreme Court of India

Union Territory of J and K (Previously State of Jammu and Kashmir) v. Raja Muzaffar Bhat

The Supreme Court held that a valid District Survey Report, including a proper replenishment study, is a mandatory precondition for granting environmental clearance for sand mining, and that this requirement cannot be bypassed simply by restricting the permitted mining depth to one meter, since no rule allows that as a substitute. Since it was undisputed that no proper DSR or replenishment study existed for this project, the Court upheld the National Green Tribunal's decision quashing the clearance and dismissed all the appeals. It also declined to interfere with the Tribunal's separate finding that the project proponent had violated clearance conditions by using heavy machinery (JCBs/excavators) instead of manual/semi-mechanized methods, leaving it to the J&K Pollution Control Board to take appropriate action, and noted the project itself was already complete so no further clearance orders were needed.

Decided 22 Aug 2025Read case
Mining LawSupreme Court of India

Chandra Bhan Singh v. State of Uttar Pradesh and Others

The Supreme Court examined the original government records behind the 2017 policy (produced on the Court's earlier direction) and found the State had validly exercised its power under Rule 68 of the U.P. Minor Minerals (Concession) Rules, 1963, to relax the normal rules: necessitated by a court-ordered mining ban that was disrupting construction activity. On the substantive dispute, the Court held that Section 9B of the 1957 Act (which links DMF contributions to a percentage of royalty) does not apply to "minor minerals" like sand, because Section 14 of the Act expressly excludes Sections 5 to 13 from applying to minor minerals. Instead, the applicable provision was Section 15A, which separately empowers the State Government to independently prescribe the amount payable to the DMF Trust for minor minerals, and the State had validly fixed this at 10% of the total bid/title amount under Rule 10(2) of the District Mineral Foundation Trust Rules, 2017. The appellant's reliance on general mining Rules 21 and 54 also failed because those rules do not apply once an area is opened up for tender/auction under Rule 23(3). The appeals were dismissed and the demand notice upheld.

Decided 23 May 2025Read case